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AWS Announces US$ 8.3 Billion Investment in Cloud Infrastructure in India

27 January 2025     Author: Astute Analytica

Amazon Web Services (AWS) has unveiled a substantial plan to invest $8.3 billion into cloud infrastructure in the AWS Asia-Pacific (Mumbai) Region, located in Maharashtra. This initiative aims to significantly expand AWS’s cloud computing capacity in India and cater to the growing demand for cloud services nationwide.

The investment is projected to contribute $15.3 billion to India’s gross domestic product (GDP) and create more than 81,300 full-time jobs annually in the local data center supply chain by 2030. This announcement is part of AWS’s broader plan to invest $12.7 billion in cloud infrastructure in India by 2030.

On January 22, 2025, the Government of Maharashtra and AWS formalized this investment plan by signing a memorandum of understanding (MoU) at the World Economic Forum in Davos. Highlighting the importance of this initiative, David Zapolsky, Senior Vice President of Global Public Policy and General Counsel at Amazon, remarked, “At AWS, we see tremendous potential for India’s digital economy to thrive for years to come with the growing demand for cloud and artificial intelligence. This is why we plan to invest $8.3 billion into cloud infrastructure in Maharashtra by 2030.”

Driving Economic Growth and Employment Opportunities

AWS has already made significant contributions to India’s economy, having invested $3.7 billion in cloud infrastructure in Maharashtra between 2016 and 2022. With this new $8.3 billion investment, AWS is expected to generate a substantial economic impact, contributing $15.3 billion to India’s GDP by 2030. This economic growth stems from AWS’s role in enhancing India’s information technology (IT) sector and spending on goods and services related to constructing and operating data centers.

Additionally, this investment is anticipated to support an annual average of 81,300 full-time equivalent jobs. These jobs will be created across industries such as telecommunications, non-residential construction, electricity generation, facilities maintenance, and data center operations—all of which are integral to the data center supply chain.

The ripple effects of AWS’s investment will go beyond economic metrics. It will accelerate productivity gains in India’s economy, facilitate the digital transformation of businesses and organizations of all sizes, and help develop a skilled workforce in cloud and digital technologies. Furthermore, AWS plans to invest in renewable energy projects and empower local communities in the regions where it operates.

Building on a Strong Foundation in India

AWS has a long history of growth and investment in India, starting with the launch of its first cloud infrastructure region in the country—the AWS Asia-Pacific (Mumbai) Region—in 2016. This was followed by the launch of a second region, the AWS Asia-Pacific (Hyderabad) Region, in 2022. These two regions offer customers in India and beyond multiple options for running workloads with enhanced resilience, availability, and low latency. As one of the most important benefits of AWS, they are able to securely store their data within India, ensuring their compliance with local laws and data residency requirements.

Empowering Customers Across Sectors in India

AWS’s cloud services are already being utilized by hundreds of thousands of customers in India, spanning various industries and sectors. Enterprises like Axis Bank, HDFC Bank, Bajaj Allianz General Insurance, HDFC Securities, and ICICI Lombard rely on AWS to optimize costs and accelerate innovation. Startups such as Fibe and Healthify leverage AWS to transform their businesses and bring their products to market faster. Additionally, public sector organizations, including Coal India, Government e-Marketplace, Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL), and PhysicsWallah, benefit from AWS’s robust infrastructure and services.

Small and medium-sized businesses (SMBs) also form a critical segment of AWS’s customer base. Companies like Elixia Tech Solutions, Carnot Technologies, and Trade India rely on AWS to drive efficiency and scale their operations. By empowering customers across diverse sectors, AWS is playing a pivotal role in fostering innovation and digital transformation across India.

A Vision for the Future

AWS’s $8.3 billion investment in Maharashtra represents a significant step forward in its commitment to supporting India’s digital economy. By enhancing cloud computing infrastructure, generating economic growth, creating thousands of jobs, and empowering customers across industries, AWS is poised to make a lasting impact on India’s technological landscape. With its strong foundation and ambitious plans, AWS continues to position itself as a key player in driving India’s digital transformation and economic progress.

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